Useful Information

Tax Codes explained

OT - All income is taxed at the appropriate rate with no personal allowance. This is used often where there is a 2nd job.

DO - All income is taxed at the Higher Rate of tax (currently 40%). Often used for a 2nd job or pension.

DI - All income is taxed at the additional rate of tax (currently 45%). Often used for a 2nd job or pension.

NT - No tax is taken from income.

L - Basic Personal Allowance has been applied.

P - Full personal allowance for those aged 65-74 applied.

Y - Full personal allowance for those aged 75 or over applied.

T - HMRC need to review the code.

K - Total allowances are less than total deductions, effectively a negative code.

Note:Notices of codings are no longer copied to your Tax Agent due to HMRC cost cutting measures so please ensure you provide your agent with a copy so that they can check that the correct code is being applied.

Income Tax Tables

2017/18

Taxable Income

Income Rate

Dividend Rate

Starting Savings Rate *

0 - 5,000

0%

0%

Basic Rate

0 - 33,500

20%

7.5%

Higher Rate

33,501- 150,000

40%

32.5%

Additional Rate

> 150,000

45%

38.1%

Child Benefit charge from 7/1/2013 is 1% of benefit for each £100 of income for the tax year between £50,000-£60,000.

* The starting savings rate only applies to savings income. If an individual's taxable non-savings income is above the starting rate limit, then the starting rate for savings will not be available for savings income.

2016/17

Taxable Income

Income Rate

Dividend Rate

Starting Savings Rate *

0 - 5,000

0%

10%

Basic Rate

0 - 32,000

20%

7.5%

Higher Rate

32,001- 150,00

40%

32.5%

Additional Rate

> 150,000

45%

38.1%

* The starting savings rate only applies to savings income. If an individual's taxable non-savings income is above the starting rate limit the 10% starting rate will not apply.

Income Tax Reliefs

2017/18

2016/17

Personal Allowance

11,000

10,600

Personal Allowance – if born before 6/4/1938

11,500

11,000

(reduce PA by £1 for every £2 adjusted net income over £100,000)

Married Couple's Allowance (relief 10%) if born before 6/4/1935

8,445

8,355

Married Couple's Allowance (relief 10%) minimum amount

3,260

3,220

Age Allowance Income Limit - (reduce allowance by £1 for every £2 of adjusted net income over threshold)

28,000

27,700

Transferable Tax allowance for married couples & civil partners

1,150

1,100

Dividend Allowance (0% rate to income within the allowance)

5,000

5,000

Savings Allowance – Basic rate taxpayers (0% rate to income within the allowance)

1,000

1,000

Savings Allowance – Higher rate taxpayers (0% rate to income within the allowance)

500

500

Trading Allowance

1,000

n/a

Property Income Allowance

1,000

n/a

Other Tax Tables

Corporation Tax Rates

2017/18

2016/17

Corporation Tax

19%

20%

Capital Gains Tax

2017/18

2016/17

Annual exemption

11,300

11,100

Tax rate – to basic rate limit

10%

10%

Tax rate – above basic rate

20%

20%

Tax rate – to basic rate limit (on residential property)

18%

18%

Tax rate – above basic rate limit (on residential property)

28%

28%

Entrepreneurs Relief – up to lifetime limit of £10 million

10%

10%

Value Added Tax

2017/18

2016/17

VAT Registration Threshold

85,000

83,000

Rate

20%

20%

Key Dates 2017/18

Self Assessment

31 July 2017 - 2nd payment on account for 2017/18.

5 October 2017 - Deadline for notifying HMRC of new sources of income if no tax return issued for 2016/17.

31 October 2017 - Deadline for submission of 2016/17 paper returns.

31 January 2018 - Deadline for filing electronic returns for 2016/17. Balancing payment for 2016/17 and 1st payment on account for 2017/18.

Payroll

19 May - Final RTI submission due to HMRC for year to 5 April 2017.

31 May - Forms P60 due to employees for year to 5 April 2017.

6 July - Forms P11d, P9d, P11d (b) due to HMRC (with copies to employees) for year ended 5 April 2017.

Professional Indemnity Insurer

Our professional indemnity insurer is RSA Insurance Plc, 9th floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD. The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States or Canada.